Chorus Limited · NZX:CNU
Chorus — Investor Day (December 2024)
86 slides from Chorus's investor day presentation, Dec 2, 2024
Slide 1: Investor Day 2024
INVESTOR CHMRUS Day o024
Slide 2: Disclaimer
Disclaimer This presentation: • Is provided for general information purposes and does not constitute investment advice or an offer of or invitation to purchase Chorus securities. • Includes forward-looking statements. These statements are not guarantees or predictions of future performance. They inv
Slide 3: Chorus CEO Mark Aue
CHORUS CEO MARK AUE CH @R U S _INVESTOR DAY 2024
Slide 4: Why we've invited you here today
Why we’ve invited you here today Provide greater Transitioning Market clarity and from builder context has transparency to ‘Great shifted. Reset on Our Road Network our Strategy to 2030 Operator’ Evolving to a Capital Purpose and simpler, more framework aspiration are efficient, and premised on clea
Slide 5: Agenda
Agenda 12:45 Welcome Mark Aue CEO 12:50 Board perspective Mark Cross Chair 1:00 Strategy Mark Aue CEO 1:20 Global broadband trends Rupert Wood Analysys Mason – Research Director 1:40 Data demand Kurt Rodgers Network Strategy Manager 2:00 Achieving 80% uptake Elaine Campbell GM Access 2:20 Q&A 2:35 A
Slide 6: Who you'll hear from: Chorus speakers
Who you’ll hear from: Chorus speakers Mark Cross Mark Aue Elaine Campbell Mike Shirley Ewen Powell Chair, Chorus Board Chief Executive Officer Executive GM, Access Executive GM, Infrastructure Chief Technology Officer Julian Kersey Anna Mitchell Drew Davies Kurt Rodgers Chief Corporate and Executive
Slide 7: Chorus Board Chair Mark Cross
CHORUS BOARD CHAIR MARK CROSS 7
Slide 8: Your Board's beliefs
Your Board’s beliefs Fibre is Connections, Empowering Managed exit Market future connections, our people from Copper challenger proofed connections Prioritise An long term A considered appropriate value Promote approach to capital through digital equity new structure capital opportunities allocation
Slide 9: CH @®RUS
CH @®RUS CH @ R U S _INVESTOR DAY 2024
Slide 10: Fibre has proven resilient in a time of change
Fibre has proven resilient in a time of change CPI (%) Unemployment (%) 2020 2020 2021 2021 2022 2022 2023 2023 2024 2024 0 2 4 6 8 0 1 2 3 4 5 New dwellings consented Consumer confidence 2020 2020 2021 2021 2022 2022 2023 2023 2024 2024 0 20000 40000 60000 0 50 100 150 INVESTOR DAY 2024 Data at 30
Slide 11: We have regulatory clarity
We have regulatory clarity Fibre regime now well established; our focus is legacy copper settings • Fibre RAB has grown through PQP1: $5.9bn at 31 Dec 2023 • PQP2 period extended to 4 years, up from 3 years for PQP1 • PQP2 capex and opex allowances are workable following constructive feedback proces
Slide 12: An evolving broadband market – all NZ
An evolving broadband market – all NZ Household penetration/fibre share % Market share by retailer Source: IDC Telecommunications Market Analysis & Forecast Report 2024 INVESTOR DAY 2024 12
Slide 13: Deloitte October 2024 Report: Unleashing fibre
Deloitte October 2024 Report: “Unleashing fibre: The future of digital fibre infrastructure in New Zealand” INVESTOR DAY 2024 13
Slide 14: CH @®RUS
CH @®RUS CH @ R U S _INVESTOR DAY 2024
Slide 15: 10-year outlook with 3 distinct horizons
10-year outlook with 3 distinct horizons 15 HORIZON 2 HORIZON 1 (FY26-29) HORIZON 3 (FY25) Growth, Simplicity (FY30-34) Embed Adaptive and Efficiency All Fibre Business Organisation ‘accelerating the ‘future state, ‘getting future benefits from our single technology‘ fit for purpose‘ transition‘ INV
Slide 16: Aspiration
ASPIRATION Simplified all fibre business with 80% uptake by 2030. 16
Slide 17: Purpose
PURPOSE Unleashing potential through connectivity. Enabling better futures for Aotearoa. 17
Slide 18: Our Ecosystem
Our Ecosystem OUR CUSTOMERS, PARTNERS AND INVESTORS OUR PEOPLE • Telecommunications Forum initiatives on network resilience and climate change • Enabling better futures for our • Worker welfare programme people: Flexible working practices, wellbeing days, parental leave policy, • Supplier code of pr
Slide 19: Capability
Capability BUSINESS MODEL Efficient Network Infrastructure Market Operator Player Challenger CORE COMPETENCIES Regulatory Go-to-Market Tangible Assets Management INVESTOR DAY 2024 19
Slide 20: Strategic Pillars
Strategic Pillars INVESTOR DAY 2024 20
Slide 21: Our Road to 2030: Growth, Simplicity & Efficiency
Our Road to 2030 Growth, Simplicity & Efficiency PURPOSE Unleashing potential through connectivity. Enabling better futures for Aotearoa. ASPIRATION Simplified all fibre business with 80% uptake by 2030. BUSINESS Efficient Network Market Infrastructure MODEL Operator Challenger Player CORE Regulator
Slide 22: FWA: threat to fibre or a staging post on the road to fibre?
Chorus Investor Day FWA: threat to fibre or a staging post on the road ¢ mason to fibre? @eeeaeeaeeeeaoeveoeaeoeoeeooeoeoaeoneoeeede e**F analysys Rupert Wood 2 December 2024 CH @R U S _ INVESTOR DAY 2024 22
Slide 23: Fast track to an all-fibre future
Fast track to an all-fibre future 23
Slide 24: What does the future hold for data demand?
Kurt Rodgers Network Strategy Manager What does the future hold for data demand? • We forecast solid growth: average ~1TB by 2029 • Underpinned by broadcast TV switch-over to streaming • Live sports streaming, 4K and AI would boost growth again • Only fibre can meet future capacity and reliability n
Slide 25: 30% per annum data growth over last decade
30% per annum data growth over last decade • Customers are using 13x more data today than a decade ago 600 604GB • 636GB monthly usage on fibre in 2024 Average Monthly Data Usage (GB) • 17% using >1TB per month 500 • Forecast 14% per annum growth over next decade 400 • Expect ~1TB average monthly us
Slide 26: Data usage by speed tier on our network
Data usage by speed tier on our network • Chorus offers different plans to meet customer needs • Entry level 50Mbps meets low data needs • High data users are choosing higher speed plans: • 36% of Hyperfibre customers use >2TB • 46% of Fibre Max customers use >1TB • 53% of 300Mbps customers use >500
Slide 27: Audiences are moving online
Audiences are moving online • Global video sharing platforms have the highest daily reach (64%) and viewing minutes (92 per day) • Subscription video on demand (SVOD) is next highest with 56% reach and 89 minutes/day • Linear TV is declining but still has 47% reach and 87 minutes/day • Broadcaster v
Slide 28: The transition to streaming TV hasn't finished
The transition to streaming TV hasn’t finished • Growth in data usage has tracked the shift from linear to streaming TV 70% 60% Daily Audience • Older generations are still shifting to streaming 50% • Broadcaster video on demand is more popular with older viewers 40% 30% 20% 180 800 10% 0% TV Vieiwi
Slide 29: Terrestrial TV switch-off will boost low data households
Terrestrial TV switch-off will boost low data households Video on Demand has very 25% YoY growth in streaming 60+ age group watch over 3.5 high growth amongst 60+ volume on TVNZ+ platform hours of TV per person per day Daily Audience over time 1000 All New Zealanders 60+ 900 800 Monthly Data Usage (
Slide 30: Live Sports, 4K and AI add to data usage and higher peaks
Live Sports, 4K and AI add to data usage and higher peaks • Live Sports streaming taking off in Europe and US 4k effect on data demand — Data usage (GB) • Amazon and Netflix are innovating in the sports streaming market • Sky rolling out hybrid Box and Pod1 2500 • 7% increase in SkySportNow 2000 cus
Slide 31: Broadband is getting peakier. Fibre has the capacity
Broadband is getting peakier. Fibre has the capacity • Fortnite Game Download Fortnite Netflix Live Normal Peak • Netflix Live sports streaming INVESTOR DAY 2024 31
Slide 32: Fibre is a bullet train. FWA is a rollercoaster
Fibre is a bullet train. FWA is a rollercoaster Fibre delivers a consistent speed experience, Fixed wireless performance is unpredictable, at any location and at any time of day it varies by location and time of day MBNZ Report - Data from Spark’s 5G Fixed Wireless plan INVESTOR DAY 2024 32
Slide 33: Wi-Fi 7 opens in-home networks up for even more growth
Wi-Fi 7 opens in-home networks up for even more growth Wi-Fi 7 • Wi-Fi 7 provides a huge speed uplift: • Wi-Fi 5 to 6 = ~40% • Wi-Fi 6 to 7 = ~400% uplift +400% • Wi-Fi 7 supports 2x more devices than Wi-Fi 6 Wi-Fi 6 • Wi-Fi 7 devices are coming to market quickly and prices are dropping • Wi-Fi 7 no
Slide 34: Driving fibre uptake to 80% by 2030
Elaine Campbell Executive General Manager, Access Value Stream Driving fibre uptake to 80% by 2030 • Fibre is the global gold standard for broadband technology • 80% is aspirational but achievable (~240k connections over 6 years) • NZ fixed wireless market is unique and already highly penetrated • W
Slide 35: Our road to 80% uptake
Our road to 80% uptake Promoting the superiority of fibre across all channels Develop Win in Maximise propositions fibre customer for under- moments that uptake penetrated matter segments 35
Slide 36: Moving from 72% to 80% uptake requires ~240k connections
Moving from 72% to 80% uptake requires ~240k connections Path to 240kGrowth connections FY25 opportunity pools Net Connection FY25-FY30 (overlapping) 300 ~110k Premises already passed ~180k 250 90 240 Under-penetrated segments 200 ~130k ~220k New build 20 Fixed wireless 150 120 8 and HFC 100 Any new
Slide 37: Under-penetrated segments is a focus to drive uptake
Under-penetrated segments is a focus to drive uptake Priority segments Other segments ~30k ~60k retirement Businesses villages ~180k premises ~30k digitally ~50k ~10k excluded Large MDUs Holiday homes households Target: Digital equity Severe/material hardship and very low-income households proof of
Slide 38: Moving from one size fits all to tailor offers for RSPs
Moving from one size fits all to tailor offers for RSPs Chorus Fibre Market Share ~580k power ~430k fibre customers customers 10% Pure RSPs 15% ~450k power ~340k fibre Bundlers customers customers MNO's 75% ~940k ~245k fibre customers customers Note: numbers are NZ wide Consumer incentives Home Fibr
Slide 39: Retention is important, we are growing our muscle
Retention is important, we are growing our muscle Fibre Churn (Premises) 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Feb-20 Feb-21 Jun-19 Jun-20 Jun-21 Jan-22 May-22 Jan-23 May-23 Jan-24 Jun-24 Mar-22 Dec-19 Jul-22 Mar-23 Jul-23 Mar-24 Sept-22 Nov-22 Sept-23 Nov-23 Aug-19 Apr-20 Dec-20 A
Slide 40: Delivering an excellent experience creates fibre advocates
Delivering an excellent experience creates fibre advocates Basic fibre 9 Fibre 300 17 Word of mouth reach Overall fibre Max Fibre 38 Positive: 4-6 Install CX Intact CX Assure CX to 5G NPS Negative: 10+ 8.4 7.9 8.5 lead +35 4G FWA -17 88% preference 5G FWA -14 NPS lead between fibre and total FWA (3M
Slide 41: Fibre is the gold standard and we're making it better
Fibre is the gold standard and we’re making it better Fibre In-home Boost Hyperfibre trial 2.0 Investigating From From In-home Self- 2G,4G, 8G introduction of 50/10Mbps 300/100Mbps coverage Network setup installation of available with a low-speed to 80/40 or to performance support HF ONTs 25G lab-te
Slide 42: Fibre is the gold standard. Period.
Fibre is the gold standard. Period. INVESTOR DAY 2024 42
Slide 43: Q and A
Q and A Insert picture and send to back – see next slide 43
Slide 44: Time for a break
Time for a break CH @ R U $§ _INVESTOR DAY 2024
Slide 45: Demand for digital infrastructure presents strong growth opportunity
Mike Shirley Executive General Manager, Infrastructure Value Stream Demand for digital infrastructure presents strong growth opportunity for Chorus • New structure brings dedicated resourcing and prioritisation • Growth opportunities in our core - Mobile Infrastructure, Data Centre Connectivity, lev
Slide 46: New Zealand's largest digital infrastructure 'neutral host'
New Zealand’s largest digital infrastructure ‘neutral host’ NATIONAL REACH ACCESS EXTENSIVE ASSET BASE ~22,000km 400Gbps 62 ~180,000km 1-10Gbps ~60,000km 212,000 TRANSPORT FIBRE 400GBPS CAPABLE DWDM MESH NODES ACCESS FIBRE LAYER 2 ACCESS NATIONWIDE DUCT POLES TRANSPORT NETWORK 400Gbps CAPABLE PRODUC
Slide 47: Demand for fibre and digital infrastructure continues to grow
Demand for fibre and digital infrastructure continues to grow NEW Chorus Infrastructure Existing expertise and revenues Exploring adjacent opportunities FOCUS AREAS Mobile New Property Smart Locations Neura Data Centre EdgeCentres Sub Sea Infrastructure Wireless IoT Connectivity INVESTOR DAY 2024 47
Slide 48: Infrastructure revenue - overview
Infrastructure revenue - overview Access Backhaul Potential path to $180m to $200m annual infrastructure ~$155M Legacy revenue by 2030, with infrastructure incremental upside revenue Colocation opportunities. (annualised) Other Note: Infrastructure revenue on this slide includes revenue from various
Slide 49: Mobile Infrastructure segment
Mobile Infrastructure segment Building on our strong NZ mobile infill connectivity market existing mobile backhaul portfolio to grow revenue by: • Connecting ~50% of cell sites today and looking to maintain share as market grows +60-70% • Helping tower companies connect CAGR new macro cell sites • U
Slide 50: New property development and Smart locations
New property Smart development locations Annual pipeline • Recession has slowed housing Fibre connectivity • Connecting non-building CCTV, of new premises growth and funding in wake of enabling smart digital billboard and traffic sites supported post-COVID building boom towns and cities • ~40% growt
Slide 51: Exploring Option 1: IoT Solutions with Launch of Neura
Exploring Option 1 IoT Solutions with Launch of Neura • Neura in-market offering IoT asset management solutions using long-range LoRaWAN technology • Enables near real-time monitoring and management of critical assets like water, public lighting, power and waste collection • Ability to utilise Choru
Slide 52: Cloud migration & AI is driving exponential growth for fibre connectivity
Cloud migration & AI is driving exponential growth for fibre connectivity NZ data centre connectivity +10-15% CAGR FY25 FY26 FY27 FY28 FY29 Source: Chorus estimates INVESTOR DAY 2024 52
Slide 53: Exploring Option 2: New Model to Scale EdgeCentres
Exploring Option 2 New Model to Scale EdgeCentres • EdgeCentres established in 4 Chorus exchanges (Auckland; Tauranga; Wellington, Proposed Build Channel Chorus Enterprise Christchurch) Model Partner Partner • Product solution leverages additional co-location space with copper network Current retire
Slide 54: Exploring Option 3: Unlocking Hyperscaler Connectivity
Exploring Option 3 Unlocking Hyperscaler Connectivity • Investigating opportunity with DataGrid that includes national and trans-Tasman connectivity • Could unlock a key role for Chorus in burgeoning data centre ecosystem and leverage lower South Island renewable energy • Builds on Chorus’ existing
Slide 55: Maximising value from our future-proofed fibre network
Ewen Powell Chief Technology Officer Maximising value from our future-proofed fibre network • Fibre is a highly reliable and scalable network technology • We’re focused on prudent and efficient asset management • Growing bandwidth demand and regulatory requirements drive ongoing capacity investment
Slide 56: A highly reliable, scalable, future-proofed network
A highly reliable, scalable, future-proofed network Operations Element manager Aggregation Transport Suburban access Splitter 1:16 ~1.3m stack platform ~400 switches ~1,000 nodes exchange (not powered) Optical Network Terminals Transport equipment Aggregation switch Assurance Element Mgr Aggregation
Slide 57: Prudent and efficient asset management
Prudent and efficient asset management Investment drivers Annual sustaining capex (%) • Connection growth, data growth, asset lifecycle management, product and business improvements • Regulatory regime drives data-driven decision-making 25 and 10-year asset management planning 35 network electronics
Slide 58: Network electronics
Network electronics Investment drivers • Capacity • Peak bandwidth growth ~21% p.a. • 60% utilisation trigger, to stay within 90% regulatory standard • Lifecycle • Equipment (5-10yrs); software (2yrs) • Investment phased to smooth capital and optimise field activity. • Products and customer demand •
Slide 59: Physical network assets
Physical network assets Investment drivers Fibre cable age profile (years)* • Lifecycle 35,000 • Significant proportion of physical assets pre-date UFB roll-out 30,000 • ~8,000km shared legacy fibre 30+ years 25,000 • Replacement subject to asset performance (574km planned through PQP2) and investme
Slide 60: IT investment
IT investment Investment drivers • Lifecycle management • ~50% of IT spend: enterprise, provisioning and assurance systems • strong focus on cyber security • Process and product development or improvement • ~50% of IT spend on developing new products and systems to support growth initiatives , custo
Slide 61: Regulatory outlook
Julian Kersey Chief Corporate & Regulatory Officer Regulatory outlook • Workable outcomes for PQP2 provide certainty and stability • New Zealand fibre compares well globally • Regulatory simplification is needed over Horizon 2 with a focus on: • copper deregulation; and • lighter touch fibre regulat
Slide 62: PQP2 outcomes provide certainty and stability
PQP2 outcomes provide certainty and stability Expenditure allowances 1200 Opex Capex 1000 $790m $1,140m 800 600 $m 400 OPEX CAPEX 200 0 Chorus Draft Final Chorus Draft Final No change to proposal decision decision adjusted decision decision WACC anchor proposal 7.68% services Note: “adjusted” propos
Slide 63: Fibre pricing and coverage compare well globally
Fibre pricing and coverage compare well globally Price for Fibre 300 (or equivalent) – Sept 2023 Price for Fibre 1 gig (or equivalent) – Sept 2023 Source: Broadband Coverage in Europe 2023, a study by Omdia and Point Topic for the European Commission, with NZ data added INVESTOR DAY 2024 63
Slide 64: Time to take stock
Time to take stock Existing framework reflects out of date market assumptions Local Fibre Companies Chorus: ~1.1m connections Fixed Wireless Networks: (service some major centres – e.g. (LFCs): ~375k connections ~350k connections Auckland, Wellington, Dunedin) (service some major centres – e.g. (ser
Slide 65: Pathway to simplification by 2030
Pathway to simplification by 2030 TODAY* 2025 2026 2027 2028 2029 TSO variation for deep rural assets No case for Copper dereg TSO obligation continued review is outdated regulation of copper Fibre input methodologies Information review (tbc) Fibre market disclosure- very different only from 2018 re
Slide 66: Consumer transparency opportunities
Consumer transparency opportunities TODAY* 2025 2026 2027 2028 2029 Updated marketing guidelines Enabling informed customer decisions Product disclosure guidelines Update industry Consistent shopping journey and marketing codes unbiased up-front info Billing and switching review More meaningful comp
Slide 67: Copper retirement and fibre expansion
Anna Mitchell Executive General Manager, Fibre Frontier Value Stream Copper retirement and fibre expansion • Accelerated copper retirement by 2030 is achievable • Customer outcomes key to delivering on our strategy • Copper savings building over the coming years, essential to staying FCF+ • Fibre Fr
Slide 68: Focusing on copper retirement by 2030
Focusing on copper retirement by 2030 End-to-end copper retirement Customer transition Asset optimisation and reuse Decommissioning and disposal • Organisational alignment to optimise programme delivery • Prioritising encouraging and enabling customer transition and migration • Implementing data-dri
Slide 69: Pathway to copper retirement by 2030
Pathway to copper retirement by 2030 TODAY 2025 2026 2027 2028 2029 2030 CMAR-RELATED TSO VARIATION COPPER DEREGULATION 33k Exit of copper services in Chorus fibre areas FULL COPPER EXIT 16k Exit of copper services in LFC fibre areas Exit of complex, legacy copper equipment 1.5k (i.e. Customer Multi
Slide 70: Rural telco market has changed significantly since CNU listed
Rural telco market has changed significantly since CNU listed Of 345k rural premises… 97% Rural copper consumers can now access terrestrial wireless alternatives 73% have mobile coverage $270m Spent by govt on wireless in rural New Zealand since 2016 – not including the 5G spectrum allocation for ex
Slide 71: Reducing costs in line with declining customer numbers
Reducing costs in line with declining customer numbers Cabinets remaining Chorus Fibre Areas LFC Fibre Areas Non-Fibre Areas 5,150 1,000 650 3,500 • Average savings per cabinet ~$2,500p.a. (electricity and avoided network maintenance) • Over 1,500 cabinets closed to date • Cumulative net savings of
Slide 72: Retirement of Customer Multi-Access Radio systems
Retirement of Customer Multi-Access Radio systems Technology Customer surpassed by numbers have modern halved in past alternatives two years Serving 800+ sites ~1,300 were used to addresses provide service Costs Fault rate 15x significantly higher than exceed fibre revenue Nevis Country-set repeater
Slide 73: Demand for fibre outside current footprint is strong
Demand for fibre outside current footprint is strong 10k premises due for completion mid-2025 First 10 builds are complete and over 1,000 addresses passed Build currently underway in 25 areas across NZ Over 3,000 expressions of interest – nearly 70% in first 10 areas Over 500 installs to date with m
Slide 74: Exploring Option 4: Fibre Expansion
Exploring Option 4 Fibre Expansion $17b+ Halve the Fibre to • NZIER and Deloitte reports digital divide 95% of Kiwis show significant socio-economic Economic gains to benefits from high-capacity New Zealand A realistic goal for broadband our country • We’re encouraging government to consider fibre a
Slide 75: A solid fibre business with clear upside in Horizon 2
Drew Davies Chief Operating Officer A solid fibre business with clear upside in Horizon 2 • Enabling our Value Streams to drive growth and optimise operations • Immediate focus on streamlined go-to-market capability and simplification • Copper retirement to release $50m+ of annual direct copper opex
Slide 76: We're getting future fit
We’re getting future fit FY25 guidance unchanged from what we have informed you previously • EBITDA: $700m-$720m* • Sustaining capex: $200m-$220m • Gross capex: $400m-$440m • Dividend*: 57.5cps unimputed *subject to no material adverse changes in circumstances or outlook Where we’re headed with our
Slide 77: Copper cost outlook
Copper cost outlook Tight cost control keeps direct copper revenues and costs FCF positive • Copper capex, net of contributions, $15m (FY24) and declining as activity transitions to fibre • Direct copper opex of ~$54m (FY24) steps down as copper customers migrate to other networks, or to fibre with
Slide 78: Accelerated copper depreciation rolls off rapidly
Accelerated copper depreciation rolls off rapidly 100 90 80 70 NPAT impact 60 reduces by $m ~$50m in FY26 50 40 30 20 10 0 FY22 FY23 FY24 FY25e FY26e FY27e Cables: CNU area Cables: LFC area Duct: LFC area Poles: LFCarea Cables: rural Poles: rural Estimate INVESTOR DAY 2024 78
Slide 79: Optimising options for our asset portfolio
Optimising options for our asset portfolio Our assets Optimisation options ~600 exchanges • EdgeCentre co-location in emptied copper spaces • Sale of non-RAB exchanges as copper removed ~1,100 high sites • Potential sale of primary sites to towercos • Sale to customers or exit retired sites (e.g. CM
Slide 80: Exploring Option 5: Asset Optimisation on Copper Recovery
Exploring Option 5 Asset Optimisation on Copper Recovery • ~4,000km of large copper cable that is economic to recycle • Trial to assess practicality and economics of cable removal in H2 FY25 • Expect ~3 to 7-year programme Estimated $30m-$50m net proceeds opportunity for large copper cable recycling
Slide 81: Exploring Option 6: Asset Optimisation on High Sites and Property Sales
Exploring Option 6 Land & Buildings: Net Book Value $375m Asset Optimisation on High Sites and Property Sales UFB area LFC area Other area High sites • Land and buildings NBV of $375m (FY24) • A review is underway of our nationwide high sites portfolio to assess potential options for sale/disposal i
Slide 82: MAR and RAB outlook provides certainty to 2028
MAR and RAB outlook provides certainty to 2028 • Expect final MAR (due next week) to be higher than draft, given final expenditure allowances and our depreciation tilt • Strong MAR tailwinds in PQP2: WACC 7.68%; ~$200m wash-up; ~$85m tax building block from 2028; CPI wash-up in year 1; CIP ‘benefit’
Slide 83: Capital management principles and policy
Capital management principles and policy A digital infrastructure business maximising long-term value and returns Dividend policy: pay an ordinary dividend of 70% to 90% (on average, over time) of net cash flow from operating activities less sustaining capital expenditure Capital allocation underpin
Slide 84: Q and A
CH @R U S _INVESTOR DAY 2024
Slide 85: Recap: Fast track to an all-fibre future
Recap: Fast track to an all-fibre future We’re New market Regulatory moving challenger settings on quickly to posture fibre provide become an supports clarity and all-fibre push for stability for business by 80% uptake next 4 years 2030 Focus on Copper leveraging our We are retirement infrastructure
Slide 86: Thanks for joining us
Thanks for joining us CH @R U S _INVESTOR DAY 2024